88m3
Fast Money & Foreign Objects
It’s Official: The Trump Tax Cuts Didn’t Pay for Themselves in Year One
Federal tax revenues declined in 2018 while economic growth accelerated, undercutting the Trump administration’s insistence that the $1.5 trillion tax package would pay for itself.
By Jim Tankersley
A year after the $1.5 trillion tax-cut package took effect, economic growth has accelerated, just as Republicans promised it would when pushing the law through Congress. Growth appears likely to hit 3 percent for 2018, after adjusting for inflation, which is a full percentage point higher than the Congressional Budget Office forecast for the year in 2017. Not all of that increase is attributable to the tax cuts, but some of it is.
That’s good news for Republicans’ longstanding claim that cutting taxes would provide such an economic bump that additional tax revenue would flow in to make up for what was lost through lower tax rates.
But the bad news is that hasn’t happened. The additional tax revenue has yet to show up, even with stronger growth.
Data released this week by the budget office provides the first complete picture of federal revenues for the 2018 calendar year, when the tax cuts were in full effect. (The government’s 2018 fiscal year included three months from the end of 2017, when most of the tax cuts were not in effect.)
In the inaugural year of the tax cuts — with economic growth accelerating and the jobless rate falling to an 18-year low — federal revenues from corporate, payroll and personal income taxes actually fell.
That’s true whether you adjust revenues and growth for inflation — or not.
It’s Official: The Trump Tax Cuts Didn’t Pay for Themselves in Year One
continued in link
Federal tax revenues declined in 2018 while economic growth accelerated, undercutting the Trump administration’s insistence that the $1.5 trillion tax package would pay for itself.
By Jim Tankersley
- Jan. 11, 2019
A year after the $1.5 trillion tax-cut package took effect, economic growth has accelerated, just as Republicans promised it would when pushing the law through Congress. Growth appears likely to hit 3 percent for 2018, after adjusting for inflation, which is a full percentage point higher than the Congressional Budget Office forecast for the year in 2017. Not all of that increase is attributable to the tax cuts, but some of it is.
That’s good news for Republicans’ longstanding claim that cutting taxes would provide such an economic bump that additional tax revenue would flow in to make up for what was lost through lower tax rates.
But the bad news is that hasn’t happened. The additional tax revenue has yet to show up, even with stronger growth.
Data released this week by the budget office provides the first complete picture of federal revenues for the 2018 calendar year, when the tax cuts were in full effect. (The government’s 2018 fiscal year included three months from the end of 2017, when most of the tax cuts were not in effect.)
In the inaugural year of the tax cuts — with economic growth accelerating and the jobless rate falling to an 18-year low — federal revenues from corporate, payroll and personal income taxes actually fell.
That’s true whether you adjust revenues and growth for inflation — or not.
It’s Official: The Trump Tax Cuts Didn’t Pay for Themselves in Year One
continued in link
Just caught that this article acknowledges the tax cuts helped grow the economy...
@ the CBO suggestions for reducing the deficit... they almost all cut spending.
Are y'all paid to come in here and shill for the Republicans?
do you just hate hearing we have a spending problem?
